Over the past few months, there’s been quite an online furor about Tesla Cybertruck’s third-party insurance status and whether the elite electric vehicle faces insurance coverage problems. Although rumors about Cybertruck’s negative insurable status still surface, these have primarily proven unfounded.
The Cybertruck was unveiled by Tesla as a concept vehicle in 2019 and was first released to the public four and a half years later. Since its November 2023 release, Tesla has issued six Cybertruck recalls, with adjustments to warning lights, accelerator pedals, trim parts, windshield wipers, trunk beds, rear cameras, and drive inverters.
In January 2024, Tesla recalled Cybertrucks to amend warning lights to be larger, as they were difficult to see. It then secured its accelerator pedals after an April recall. In June, trucks recalled had trim pieces altered for greater road safety and adjustments to front windshield wipers to alleviate risks of malfunction under electrical overstress. The fifth recall in September involved a firmware update on the Cybertruck’s backup camera.
Finally, in November, Tesla recalled the Cybertruck to rectify a loss of wheel drive power because of faulty drive inverters. The most recent voluntary recall came almost a year after its initial release — a month after an X post alleged that the Government Employees Insurance Company (GEICO) had canceled third-party insurance on the Tesla electric pickup truck.
The post included a letter from GEICO stating that “this type of vehicle doesn’t meet our underwriting guidelines,” which appeared to substantiate the claim. The same letter also refers directly to the recipient’s policy, however, further stating that “all coverage on the 2024 Tesla Cybertruck provided by GEICO Casualty Co., under the above policy number, will non-renew.” This indicated that the cancellation pertained directly to the concerned individual policy.
The since-deleted post went viral on X and the social platform Reddit. Some believed the fifth Cybertruck recall, which happened only days before the X post, combined with the previous ones, might have prompted the auto insurance giant to act.
When posed the question, GEICO quickly quashed the rumors, denying a blanket cancellation of all Cybertruck policies. The individual nature of the details in the abovementioned letter appears to substantiate this. The second-largest vehicle insurance underwriter stated, “GEICO has coverage available nationwide for the Tesla Cybertruck.”
Since the fourth Cybertruck recall in June 2024, the Tesla model’s sales have soared in the year’s third quarter. It’s estimated that 16,692 in sales far eclipsed the 11,558 Cybertrucks sold in the first two quarters of 2024. With this sharp rise in sales and Tesla’s propensity for quick recalls to rectify discovered minor flaws, it’s unlikely that auto insurance companies would enforce blanket policy cancelations.
In light of the recent social media claim, some Cybertruck owners might still consider taking out optional insurance with other policies. Signs indicate that Tesla’s electric pickup trucks and additional models are performing well in the market and should continue receiving mandatory coverage.
However, mandatory coverage often provides only third-party insurance, covering injuries and property damage to others affected in accidents. Optional insurance, regularly taken through different providers at additional cost, affords the owner protection for their own vehicle and injuries and is valuable in case of an accident.
An emerging truth is that GEICO will cancel specific Cybertruck policies for many owners with private passenger automobile (PPA) policies. The insurer aims to encourage these Tesla owners to switch to commercial policies as the Cybertruck’s gross weight, combined with repair establishment difficulties in sourcing replacement parts, aligns it more closely with a commercial vehicle.
Although GEICO is not refusing to insure Tesla Cybertrucks in a blanket fashion, the form of the offered insurance policies may still change to encompass specifics relating to the fast-selling electric truck. Rumors abound that other insurance companies may soon follow suit, so more Cybertruck owners can likely expect letters similar to the one displayed on X in October.
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